ACCA P6 Advanced Taxation Study Guide

ACCA P6 Advanced Taxation Study Guide : This is the main document that students, providers and publishers should use as the basis of their studies, instruction and materials. Examinations will be based on the detail of the study guide which comprehensively identifies what could be assessed in any examination session. The study guide is a precise reflection and breakdown of the syllabus. It is divided into sections based on the main capabilities identified in the syllabus. These sections are divided into subject areas which relate to the sub-capabilities included in the detailed syllabus. Subject areas are broken down into sub-headings which describe the detailed outcomes that could be assessed in examinations. These outcomes are described using verbs indicating what exams may require students to demonstrate, and the broad intellectual level at which these may need to be demonstrated

ACCA P6 Advanced Taxation Study Guide

ACCA P6 Advanced Taxation Study Guide :

A APPLY FURTHER KNOWLEDGE AND UNDERSTANDING OF THE UK TAX SYSTEM THROUGH THE STUDY OF MORE ADVANCED TOPICS WITHIN THE TAXES STUDIED PREVIOUSLY AND THE STUDY OF STAMP TAXES

1. Income and income tax liabilities in situations involving further overseas aspects and in relation to trusts, and the application of exemptions and reliefs

a) The contents of the Paper F6 study guide for income tax and national insurance, under headings:

B1 The scope of income tax

B2 Income from employment

B3 Income from self-employment

B4 Property and investment income

B5 The comprehensive computation of taxable income and the income tax liability

B6 National insurance contributions for employed and self-employed persons

B7 The use of exemptions and reliefs in deferring and minimising income tax liabilities The following additional material is also examinable:

b) The scope of income tax:

i) Explain and apply the concepts of residence and domicile and advise on the relevance to income tax

ii) Advise on the availability of the remittance basis to UK resident individuals

iii) Advise on the tax position of individuals coming to and leaving the UK

iv) Determine the income tax treatment of overseas income

v) Understand the relevance of the OECD model double tax treaty to given situations

vi) Calculate and advise on the double taxation relief available to individuals

c) Income from employment:

i) Advise on the tax treatment of share option and share incentive schemes, including employee shareholder shares

ii) Advise on the tax treatment of lump sum receipts

iii) Advise on the overseas aspects of income from employment, including travelling and subsistence expenses

iv) Identify personal service companies and advise on the tax consequences of providing services via a personal service company

d) Income from self employment:

i) Advise on a change of accounting date

ii) Advise on the relief available for trading losses following the transfer of a business to a company

iii) Recognise the tax treatment of overseas travelling expenses

iv) Advise on the allocation of the annual investment allowance between related businesses

v) Identify the enhanced capital allowances available in respect of expenditure on green technologies

e) Property and investment income:

i) Advise on the tax implications of jointly held assets

ii) Recognise the tax treatment of savings income paid net of tax

iii) Income from trusts and settlements: Understand the income tax position of trust beneficiaries

f) The comprehensive computation of taxable income and the income tax liability:

i) Understand the allocation of the personal allowance to different categories of income.

ii) Advise on the income tax position of the income of minor children

g) The use of exemptions and reliefs in deferring and minimising income tax liabilities:

i) Understand and apply the rules relating to investments in the seed enterprise investment scheme and the enterprise investment scheme

ii) Understand and apply the rules relating to investments in venture capital trusts

2. Chargeable gains and capital gains tax liabilities in situations involving further overseas aspects and in relation to closely related persons and trusts together with the application of additional exemptions and reliefs

a) The contents of the Paper F6 study guide for chargeable gains for individuals under headings:

 C1 The scope of the taxation of capital gains

 C2 The basic principles of computing gains and losses

 C3 Gains and losses on the disposal of movable and immovable property

 C4 Gains and losses on the disposal of shares and securities

 C5 The computation of capital gains tax

 C6 The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets The following additional material is also examinable:

b) The scope of the taxation of capital gains:

i) Determine the tax implications of independent taxation and transfers between spouses

ii) Identify the concepts of residence and domicile and determine their relevance to capital gains tax

iii) Advise on the availability of the remittance basis to non-UK domiciled individuals

iv) Determine the UK taxation of foreign gains, including double taxation relief